How Protecting Your Customers' Privacy Builds Your Business

Privacy Impacts Purchasing:
Top Ways Companies Can Use Online
Testing and Privacy Seals to Improve
Privacy Practices and Increase Sales
Carolyn Hodge, Marketing Director, TRUSTe
Jamie Roche, President, Offermatica
Tess Koleczek, Chief Privacy Officer, E-LOAN
1Agenda
TRUSTe -ROI of Privacy: Earning Trust, Building Business
„Consumer attitude and research around privacy
„Privacy trust builders & eroders
Offermatica -Online Privacy Practices: Stop Guessing and Start Testing
„Explanation of testing & how it works
„Specific client cases regarding security and privacy seals
E-LOAN -Privacy: What's it worth?
„How to mobilize testing internally
„How to use ROI testing to build privacy budgets and business
relevance
Q&A
2ROI OF PRIVACY
EARNING TRUST, BUILDING BUSINESS
Carolyn Hodge
Director of Marketing
Proprietary and Confidential to TRUSTe
3ROI OF PRIVACY
Agenda
.Consumer privacy attitudes survey
.ROI case studies
.2007 Most Trusted Companies for Privacy
.What you can do to influence customer attitudes and behavior.
Proprietary and Confidential to TRUSTe
4CONFUSION ON PRIVACY IS WIDESPREAD
A majority of consumers are confused about the role of a Web
site's privacy statement.
Fifty-three percent of survey respondents believe that a posted
privacy statement means the organization "will never sell or give
any of my personal information to anyone else."
Proprietary and Confidential to TRUSTe
5PROTECTIVE ACTIONS NOT PURSUED
.45 percent have used more than one email address so that one
is reserved solely for their personal communication
.43 percent have read privacy policies
.33 percent have provided email addresses and information that
would not identify them personally
.33 percent have changed passwords on a regular basis
.26 percent have looked for third-party seals or certification
Proprietary and Confidential to TRUSTe
6TRUST IMPACTS BEHAVIOR
The survey shows that consumer trust online impacts behavior. In
the past six months:
.71 percent of respondents have decided against registering or
making a purchase online because those actions required them
to provide information that they did not want to divulge.
.41 percent said that, in the past six months, they have provided
inaccurate information to Web sites that required personal
information which respondents did not want to share.
Proprietary and Confidential to TRUSTe
7PRIVACY TRUST ERODERS
Proprietary and Confidential to TRUSTe
8PRIVACY TRUST BUILDERS
Proprietary and Confidential to TRUSTe
9LEVERS TO BUILD TRUST
.Can consumers easily find notice at the time they need?
.Easy to navigate and read the notice?
.Provide easy access to account information and ability to
change it?
.Can you easily delete or deactivate an account?
.What are cookie practices and how are they disclosed?
.Choice for sharing in and out of network?
.Third party seals present with redress mechanism?
.Have the sites had any breaches or public incidents in past 12
months?
.What is governance structure for privacy?
.Security for transactions and sensitive information?
Proprietary and Confidential to TRUSTe
10USERS WILLING TO PAY MORE FOR PRIVACY
.CMU Experimental Study on Privacy Information
.People were willing to pay about 60 cents more to protect their
privacy for each $15 item purchased.
.Low privacy premium 3-5%, High privacy premium 7-10%
Proprietary and Confidential to TRUSTe
11VISIBLE & TANGIBLE ASSURANCE PRODUCES
RESULTS
CourseAdvisor.com
$20,000/week in
additional revenue
Proprietary and Confidential to TRUSTe
12Online Privacy Practices:
Stop Guessing and Start Testing
Jamie Roche, President, OffermaticaWhat is a Test, Anyway?
"A/B.N" and "Multivariate"
Testsallow you to measure the effectiveness of websites, landing
pages, emails, ads, etc. and/or different elements thereof.
Two popular types of tests are:
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